Recent forecasts for the SGD to MYR exchange rate indicate a period of stability, with the SGD trading at 14-day highs near 3.2997, maintaining its position close to the 3-month average. This stability reflects a narrow trading range between 3.2697 and 3.3428, illustrating a relatively calm period in foreign exchange markets.
Analysts highlight that the Singaporean economy is navigating challenges posed by recent monetary policy adjustments from the Monetary Authority of Singapore (MAS). In April 2025, MAS eased its monetary policy to counteract reduced demand and tight global financial conditions, followed by a decision in July to maintain existing policy settings after better-than-expected economic growth. Despite these efforts, concerns regarding a potential negative output gap remain, with some economists anticipating further easing of the SGD policy in the future.
On the other hand, the Malaysian Ringgit faces pressures from recent rate cuts by Bank Negara Malaysia, which lowered the overnight policy rate to 2.75% in July 2025 to support the economy amid global trade tensions. This rate reduction, the first in five years, reflects heightened sensitivity to external challenges. Furthermore, ongoing trade negotiations with the U.S. aim to mitigate potential tariff impacts, which could provide a more supportive backdrop for the MYR if successful.
Both currencies are sensitive to broader market sentiments, particularly related to commodity prices. The ongoing volatility in the oil market—where OIL to USD has recently hovered at $67.73, just below its 3-month average—could significantly influence the MYR, given Malaysia's oil export profile. The broad 25.6% trading range in oil prices from $62.78 to $78.85 underscores the potential for fluctuating economic conditions that could affect the MYR's performance.
In summary, the SGD to MYR exchange rate is expected to remain within its recent stable range, influenced by the monetary policies of both nations, ongoing trade discussions, and external economic factors, particularly in the oil market. Investors and businesses engaged in international transactions should consider these dynamics and maintain flexibility in their currency strategies.
